More and more artificial intelligence names continue to invade the broader benchmark S&P 500 Index.
The latest addition is the semiconductor company Marvell Technology (NASDAQ:MRVL)
The stock surged on the news yesterday but had fallen by more than 7% as of 11:13 a.m. ET today. Being added to the S&P 500 is a big deal because it is one of, if not the most followed, indexes and market benchmarks in the world.
Additionally, index funds, exchange-traded funds (ETFs), and even active managers that track the index must buy any stock added to the index. Investors should monitor changes in the S&P 500 because many simply invest in the broader market by gaining exposure to it. Historically, the S&P 500’s performance has been very hard to beat over the long term.